Ask DcifrThs... ANYTHING (aka "should we privatize social security")

[DcifrThs]

X-posted in SM&P

ok, quick background:

im going in for a final round interview at one of the worlds largest hedge fund by net assets. one of the parts of the interview is a discussion group where i will be put in a room w/ a piece of paper w/ 3 questions on it like "should we privitize social security." I will have 5 mins/question to outline an argument...i will then be grilled on that argument.

i want to get a LOT of practice in before monday. unfortunately, questions that i can come up with probably aren't good enough or broad enough to get in said practice.

sooooooo... ask away.

my answers will be in outline form with the major factors for the analysis detailed in said outline form.

go to it

Barron

[edfurlong]

Rap song about privatizing social security plz.

[DcifrThs]

[ QUOTE ]
Rap song about privatizing social security plz.

[/ QUOTE ]

here in this one rap im gunna break down the fund gap
money-missing-in-action'll hurt when our sons tap-it
but there's not enough there, returns slacking not fair
who's not to say the way we want our money run is our care
by the time the hours there twenty fourty around there
insolvency will be the term we choose to use our own dispair
but. it's not enough. to force congress out of the rut
and make it clear people can choose to run and put their money where
ever they want.
at least a part should do enough.
to build returns and kill the burn we see while we be payin up.

Barron

[TheWorstPlayer]

Barron,

Should Freddie Mac and Fannie Mae be allowed to retain large portfolios? Why or why not? Be sure to address the potential systemic market ramifications of either decision.

- TWP

[kipin]

Should hedge funds be regulated?

[DcifrThs]

[ QUOTE ]
Should hedge funds be regulated?

[/ QUOTE ]

good one [img]/images/graemlins/smile.gif[/img]

time started outlining 11:03pm...GO...(outline form probably isn't going to work)

regulation was initially instituted to protect investors. SEC and NASD attempt to legimize and protect public companies and those that invest in them. mutual funds (and investment vehicles) formed by private and public banks that take institutional investors money in order to give returns have a responsibility to those investors. thus, short sales and other types of riskier activities are, and have been, prohibited in certain investment vehicles to protect investors.

hedge funds allow for higher returns and more risky behavior b/c the alpha producing mechanism is unconstrained. this is outlined in their prospecti and those who invest in them are aware of the increased risks.

therfore, hedge funds should be unregulated (F*CK .. 11:08 pm now) 5 minutes is not a lot of time.

ok, after thoughts. good question. TY.

more time could be spent talking about institutional investors/pension funds etc being allowed to invest in hedge funds. in that case, "regulations" could be made, of the public/institutional money rather than on the hedge funds (aka a regulation that stipulates instititional investors, investing public mani should only be allowed to invest in certain types of hedge funds or none at all).

critiques of my answer please.

Barron

[cdxx]

[ QUOTE ]
[ QUOTE ]
Should hedge funds be regulated?

[/ QUOTE ]

good one [img]/images/graemlins/smile.gif[/img]

time started outlining 11:03pm...GO...(outline form probably isn't going to work)

regulation was initially instituted to protect investors. SEC and NASD attempt to legimize and protect public companies and those that invest in them. mutual funds (and investment vehicles) formed by private and public banks that take institutional investors money in order to give returns have a responsibility to those investors. thus, short sales and other types of riskier activities are, and have been, prohibited in certain investment vehicles to protect investors.

hedge funds allow for higher returns and more risky behavior b/c the alpha producing mechanism is unconstrained. this is outlined in their prospecti and those who invest in them are aware of the increased risks.

therfore, hedge funds should be unregulated (F*CK .. 11:08 pm now) 5 minutes is not a lot of time.

ok, after thoughts. good question. TY.

more time could be spent talking about institutional investors/pension funds etc being allowed to invest in hedge funds. in that case, "regulations" could be made, of the public/institutional money rather than on the hedge funds (aka a regulation that stipulates instititional investors, investing public mani should only be allowed to invest in certain types of hedge funds or none at all).

critiques of my answer please.

Barron

[/ QUOTE ]

dcifr,

regulations were also put in place to protect the companies from being taken over by funds/speculators. while the investors could be informed of higher risks by the fund's prospectus (another form of disclosure regulation, btw), does the HF industry need to be regulated to protect the companies?

[MEbenhoe]

Dcifr,

Since I just had to answer this question for one of my classes:

What would your plan be for getting the U.S. current account deficit back on track?

[jaydub]

dcifr,

Entry level (college grad) position I presume? This will have a major impact on the questions presented.

J

[WillMagic]

[ QUOTE ]
Dcifr,

Since I just had to answer this question for one of my classes:

What would your plan be for getting the U.S. current account deficit back on track?

[/ QUOTE ]

another great question...but a better (and tougher) question would be..."why should reducing the current account deficit be a priority for the federal government?"